1. Field of the Invention
The present invention relates to the credit and debit purchase approval process and, more particularly, to a system for biometric-secure online buying, selling and bill paying in electronic commerce and retail point-of-sale setting to simplify checkout and to eliminate fraudulent credit transactions.
2. Description of the Background
Credit accounts are convenient and widely used, but they are acutely susceptible to theft. Within minutes, thieves can purchase thousands of dollars worth of merchandise, and the unsuspecting consumer eventually pays one way or another. Indeed, the net Credit/Debit Card Fraud in the United States grew from about $637.32 M in 1990 to an estimated $1.35 B in 2002 according to the Nilson report. When a cardholder denies that he or she made a transaction, the amount is charged back to the merchant, who then does not get paid for the transaction. For example, in March 2000, Expedia.com reported a $4 to $6 million (US$) third quarter loss to cover fraudulent credit card purchases made on its Web site.
The numbers continue to grow and this continues to reflect poorly on the credit industry. Consumers hesitate to shop online and some still refuse to use a credit card due to their perception of utter insecurity. Consequently, many credit companies are investing in technologies to help make credit purchases more secure. Some credit cards now display a photograph of the cardholder so criminals can't make face-to-face purchases with a stolen credit card. Many cards have holograms, secret imprints, or hidden images so thieves have a harder time making a new credit card with a stolen credit card number. Credit card companies are also pressuring merchants to be more wary, and retailers are trying new security measures. On the other hand, over-zealous security measures wind up costing sales too. Security usually increases the transaction time, and consumers do not like spending excessive time while more secure transactions re cleared. They also do not like registering their personal information in too many places due to identity theft. Consumers like a balance between security and convenience.
Biometric authentication is gaining popularity as a security measure, and especially fingerprints. For example, U.S. Pat. No. 6,950,810 to Lapsley et al. (Indivos Corporation) issued Sep. 27, 2005 shows a token less biometric electronic financial transactions method for authorization of an electronic payment between a payor and a payee using a third party provider. Users register with the third party and give a fingerprint, as well as their financial account information. The information is used during an online auction, and in each instance the bidder provides their fingerprint. Payee bid identification data and the payor fingerprint are electronically forwarded to the third party who successfully identifies the payor and payee. An electronic financial transaction is then formed between the payor and payee, comprising a transaction amount and a payor financial account identifier. This transaction is then electronically forwarded to a financial transaction processor for processing.
United States Patent Application 20040199469 by Barillova et al. published Oct. 7, 2004 shows a method and system for authentication of online commercial transactions between a customer and a merchant comprising the steps of registering a customer with a PIN and a biometric sample, and a customer financial account. Despite a broad disclosure, the claims are somewhat narrower, limited to issuing a temporary transaction code to each authenticated customer; and conducting a transaction with a merchant using said temporary transaction code.
U.S. Pat. No. 5,613,012 to Hoffman et al. (Smarttouch, LLC) issued Mar. 18, 1997, and related U.S. Pat. No. 6,269,348 to Pare, Jr. et al. (Veristar Corporation) issued Jul. 31, 2001 both show a tokenless identification system and method for authorization of transactions and transmissions. The system uses a comparison of a fingerprint gathered directly from an unknown user, with an authenticated biometrics sample of the same type obtained and stored previously.
U.S. Pat. No. 6,270,011 to Gottfried issued Aug. 7, 2001 shows a method for providing secure transactions with credit cards by adding a fingerprint scanner at the point-of-sale to obtain fingerprint data, so that a credit card company database can verify the fingerprint data against stored fingerprint information and verify the transaction accordingly. The method is integrated into the existing negotiation protocol between a point-of-sale system and a credit card company database, and uses a human fingerprint and a secure algorithm. The credit card company has the customer fingerprint for comparison on its existing database. In the case of an Internet purchase, an authorization adaptor is connected to the user PC, and once the user has made the purchase request, an encrypted communication is then commenced in which a token is sent by the credit card company to the user PC, requesting fingerprint data. The authorization adaptor provides the fingerprint scan, and sends the data to the user PC in encrypted form, for transfer to the credit card company by a secure communication, for authorization. The fingerprint scanner is based on use of a new sensor employing a technology that maps and matches fingerprints, using coincidence of the features (minutia) on as few as twelve similar points, to determine a match.
United States Patent Application 20050165700 by Karthik (Multimedia Glory) published Jul. 28, 2005 shows a security system for electronic commerce for verifying the authenticity of a user including: a server authentication program installed in a web-server at a website of a web-service provider; a client software component and fingerprint scanner installed at a workstation of the user. The scanner takes and converts a biometrics image into digital data, which is then compressed and encrypted, and transmitted to the web-server.
U.S. Pat. No. 6,944,773 to Abrahams issued Sep. 13, 2005 shows a method of on-line authentication in which a user presents one or more fingerprints for authentication during an on-line transaction, such as an Internet transaction. The host system indicates how many fingerprints will be requested for authentication, randomly selects which fingerprints will be requested, and sends a request for entry of the randomly selected fingerprints, and then compares the received fingerprint data to fingerprint data stored in a database.
U.S. Pat. No. 6,241,288 issued to Bergenek et al. in 2001 shows a fingerprint identification/verification algorithm that uses bitmaps of a stored fingerprint to correlate with a bit map of an input fingerprint, wherein an accurate reference point is located. This is followed by the selection of several two-dimensional areas in the vicinity of the reference point of the input image of the fingerprint. These areas are then correlated with stored fingerprint recognition information to determine if the input fingerprint image and the stored fingerprint recognition information are sufficiently similar to identify/verify the input fingerprint.
U.S. Pat. No. 4,229,023 to Luz issued Oct. 21, 1980 shows an identity check card with a fingerprint cut away in spots to provide alternate transparent zones and partial fingerprint zones. The placement of the card over a fresh fingerprint show immediately if the latter complements the former, thus permitting a quick and reliable check to be effected.
U.S. Pat. No. 5,869,822 to Meadows et al. issued Feb. 9, 1999 shows an automated fingerprint identification system. When a person applies for a credit card they must register a finger of their choice with the card issuance company. At the company, the finger is scanned and a composite number is produced that consists of several fingerprint-identifying parameters. The composite number is encoded onto the card and is stored in a card database. When a person wants to use the card, the card is inserted into a card reader and the person's finger is scanned by a fingerprint scanner, which produces a composite number. The immediate and stored composite numbers are compared and, when similar, use of the card is allowed.
U.S. Pat. No. 6,785,408 to Setlak et al. (Authentic, Inc) issued Aug. 31, 2004 shows a method for matching partial fingerprints using ridge flow.
United States Patent Application 20040044621 by Huang et al. (VISA) published Mar. 4, 2004 shows a payment system for facilitating a payment transaction between a payer and a payee using a separate payer access device, payee access device, and a services hub. Use of the access devices generates a tracer ticket. Upon receiving the copy of the tracer ticket, the payer uses the payer device to communicate with the services hub and forward the received copy of the tracer ticket to the services hub. The services hub then validates the payer device based on the access device information. Upon validation of the payer device, the services hub checks the copy of the tracer ticket forwarded by the access device against the previously generated tracer ticket. If the copy of the tracer ticket forwarded by the access device corresponds to the previously generated tracer ticket, the services hub authorizes the payment transaction against the payer account.
AuthenTec Inc. has announced the TruePrint™ fingerprint reader with incorporated Bluetooth transmitter. AuthenTec's press releases claim the company has 17 pending patents, but does not state the countries in which they are pending.
Internet Commerce Account Status Information (ICASI) sells a third party service that requires a biometric finger-scan to authorize use of a business bank account, credit card transaction, or online commerce. Once users have registered their fingerprints, they can conduct business with thousands of participating merchants. A window pops up asking users for authentication via the finger scanner. The scanner plugs into a USB port. The finger-scanner creates a “template” that is used to authenticate. A template can never be converted back to the original fingerprint. All fingerprint information is gathered using SSL encryption, then stored securely on computers not accessible from the outside. ICASI strives for privacy and will not sell or share information with any other company.
The TouchPass log-on security solution by NEC Technologies, Inc. offers finger-imaging technology to authenticate an individual's identity.
DigitalPersona, Inc. provides a complete fingerprint security system for PCs using USB fingerprint sensors. The plug-and-play USB fingerprint sensor is self-calibrating, and features auto and optimal image capture, latent image removal, a challenge-response link, and encrypted transmission of biometric information.
While the foregoing references all teach improved security through fingerprint biometrics, none pays attention to user-privacy refinements, or speed and convenience of each transaction.